Analyzing LGN (LGN) and The Competition

LGN (NASDAQ:LGN) is one of 190 public companies in the “Construction & Engineering” industry, but how does it contrast to its rivals? We will compare LGN to similar businesses based on the strength of its analyst recommendations, earnings, valuation, dividends, profitability, institutional ownership and risk.

Analyst Ratings

This is a summary of recent recommendations and price targets for LGN and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LGN	1	2	10	1	2.79
LGN Competitors	805	3366	7175	344	2.60

LGN presently has a consensus target price of $99.08, indicating a potential upside of 49.27%. As a group, “Construction & Engineering” companies have a potential upside of 24.20%. Given LGN’s stronger consensus rating and higher probable upside, equities research analysts clearly believe LGN is more favorable than its rivals.

Profitability

This table compares LGN and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LGN	-1.20%	4.48%	1.31%
LGN Competitors	-7.74%	10.81%	4.10%

Earnings and Valuation

This table compares LGN and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
LGN	$2.55 billion	-$59.78 million	288.61
LGN Competitors	$9.36 billion	$451.89 million	-5,962.66

LGN’s rivals have higher revenue and earnings than LGN. LGN is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

48.3% of shares of all “Construction & Engineering” companies are owned by institutional investors. 0.0% of LGN shares are owned by company insiders. Comparatively, 20.8% of shares of all “Construction & Engineering” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

About LGN

Legence Corp. is a provider of engineering, consulting, installation and maintenance services for mission-critical systems in buildings. The company specializes in designing, fabricating and installing complex HVAC, process piping and other mechanical, electrical and plumbing systems. Legence Corp. is based in SAN JOSE, Calif.